PatientPoint Healthcare IT Market Analysis Report

Transcription

1 Market Analysis Report Researched & Prepared By HealthTech Maine PO Box 5035 Portland, Maine Page 1

2 TABLE OF CONTENTS Business Background 3 Market Analysis 4 Market Program & Promotional Strategies 6 Page 2

3 Company Description Business Background PatientPoint Healthcare IT is a software development firm. In particular, the company specializes in helping office-based physician practices incorporate and cost-effectively utilize electronic health records (EHRs) data. Company Background The company was started to provide electronic health records (EHR) deployment services to office-based physician practices. Through this experience, the company s leadership discovered an opportunity to assist physicians, using of data-mining techniques, on how to better utilize their data produced from electronic health records. Electronic Health Record Data-mining Service Using its propriety software, Info-Health Documents, PatientPoint Healthcare IT will assist physician practices with examining and analyzing patient data contained in electronic health records (EHRs). The service benefits include helping providers (1) determine more precise treatment plans for patients, (2) track payments from private and government insurers, (3) meet meaningful use requirements to earn federal government incentive payments and (4) improve overall practice management. Info-Health Documents Data-Mining Software The data-mining software is designed to sift through electronic health records data to detect patterns and assist healthcare providers with the clinical decision process. Product Development Stage & Product Intellectual Property Status The software product is fully developed and tested. And, the company filed a provisional patent with the United States Patent and Trademark Office (USPTO). Target Buyers PatientPoint Healthcare IT offers its data-mining service to office-based, non-hospital owned, primary care physician practice, with one or five physicians, using a basic EHR system that captures patient history and demographics, patient problem lists, physician clinical notes, comprehensive lists of patients medications and allergies, computerized orders for prescriptions and laboratory and imaging results. Leadership and Management Team A group of seasoned professionals possessing a combined 40 years in the healthcare IT industry leads the company. In particular, Robert Dibble, the firm s President & Chief Executive Officer, has been directly involved in the healthcare IT arena for fifteen years; while the vice-president for operations has twenty years of direct industry experience and the director of marketing and business development has six-teen years of direct industry experience. Page 3

4 Market Analysis Market Size The US Bureau of Labor Statistics indicates that are approximately 230,187 physician practices in the United States. Among these physician practices, 52.8% consist of only one office-based physician. Physician group practices with 2-5 physicians make up 37.1% of physician offices in the United States. An estimated 76.4% of all establishments have less than five employees, and about 46.0% have no employees at all. Electronic Health Record Usage In 2013, 78% of office-based physicians used any type of electronic health record (EHR) system, up from 18% in 2001; In 2013, 69% of office-based physicians reported that they intended to participate (i.e., they planned to apply or already had applied) in meaningful use incentives. Almost 70% of office-based physicians noted their intent to participate in the EHR incentive program. Smaller practices are the driving force in EHR usage. In January 2013, 42.3% of one-physician practices and 53.7% of two-physician practices had reported using EHRs. Those numbers grew by 11% in just one year, with solo offices coming in at 53.7% and two-physician groups climbing to 64.9% for Research data, from SK&A Cegedim, indicated dialysis and internal medicine/pediatrics are the two practice specialties are the heaviest uses of electronic record-keeping, at 80.6% and 75.8%, respectively. Market Drivers The U.S. federal government allocated USD 27 billion with the intent to encourage EHR adoption across the nation as part of the Health Information Technology for Economic and Clinical Health (HITECH) Act in As a result of this incentive program, a large number of healthcare facilities have already implemented EHR systems. During the forecast period from 2014 to 2020, financial incentives by governments will continue to drive the growth of EHR market. As of November 2014, more than 428,000 health care providers, mostly physicians, received payment for participating in the Medicare and Medicaid Electronic Health Record (EHR) Incentive Programs. In May 2013, CMS announced that more than half of all eligible health care providers had been paid under the Medicare and Medicaid EHR Incentive Programs The Primary Care Doctors industry is projected to benefit from the healthcare reform laws of 2010 and revenue will increase in the five years to As more individuals gain health insurance due to the reform, demand for primary care services will increase, growing industry revenue in turn. Factors such as federal healthcare mandates, growing healthcare IT adoption across the globe, growing fields of predictive and prescriptive analytics, and venture capital investments are driving the market. Page 4

5 Industry Trends Transparency Market Research, indicated, the global EHR market was valued at USD billion in 2013 and is expected to grow at a CAGR of 6.4% from 2014 to 2020, to reach an estimated value of USD billion in Initial EHR costs averaged $44,000 per full-time-equivalent (FTE) provider, and ongoing costs averaged $8,500 per provider per year. Fueled by federal mandates, the emergence of big data, aging populations, and the pervasiveness of chronic diseases, the global healthcare analytics market, which includes the use of data-mining, is expected to reach $20.8 billion by 2020, according to IQ4I Research & Consultancy. The global healthcare analytics market was estimated to be $4,430.9 million in 2013 and is expected to reach $21,346.4 million by 2020, growing at a CAGR of 25.2% from 2013 to 2020, according to a new market report published by Market and Markets According to market research firm Markets & Markets, the healthcare analytics market shows a double-digit growth rate due to supportive elements such as digitization of world commerce, the emergence of Big Data, and also due to the increase in the number of advanced technologies. Competitors In a fragmented marketplace, industry estimates indicate nearly 1,000 companies actively compete in the EHR product market. The most recognized companies include Epic Systems, Allscripts, Misys Healthcare, eclinicalworks, NextGen Healthcare Information Systems, GE Healthcare, Cerner, McKesson, and Siemens. Other significant competitors are Athenahealth, Abraxas, Ingenix, Integritas, Intivia, isalus, Keane, Visonta, Advanced Data Systems, AllMeds, AmazingCharts, Aprima, ChartLogic, CliniComp, CPSI, Greenway Medical, Healthland, HMS, and CureMD. Many of these companies have the ability to provide data-mining services to physician practices. Competitive Advantage The competitive advantage is the company s skilled, experienced personnel with past accomplishments working within the industry and working successfully with physician practices. Barriers to Entry The barrier to entry is very low. At the same time, the industry is consolidating rapidly and very few large EHR vendors offer data-mining services to the company s target clients. Thus, the company has an opportunity to acquire and dominate a sizable market share within its targeted market segment. Page 5

6 Marketing Program PatientPoint Healthcare IT marketing program seeks to maximize resources, time and efforts in order to attract new clients, retain existing clients, generate consistent revenues and gain market share. The foundation of the company s marketing program includes a sound price structure, a unique competitive advantage, a proactive promotional strategy, and a reliable, efficient service delivery process. Data Mining EHR Software Product Description Info-Health Documents is a software product designed to sift through electronic health records (EHRs) data to detect patterns and improve patient care. The product is unique because it is designed to accept a wider range of data formats. In addition, the product can capture complex patterns about patients genetic, clinical, and socio-demographic characteristics. Data-mining Service Benefits With the use of the product and the service, the client benefits in the following ways: Improvement of practice protocols and quality of care delivery Identification of trends and recognition of best practices for different disease treatments Pay-for-performance programs Meet eligible incentive payment requirements under meaningful use Product and Service Implementation In applying the product and implementing the service, the company uses the Cross-Industry Standard Process for Data Mining (CRISP-DM). This process includes: 1) identifying the project s objectives, 2) collecting the initial data, 3) building a dataset, 4) analyzing the data, 5) evaluating the project s objectives and achievements and 6) presenting the data-mining results. Price Structure The company offers its service as a fee-for service. Clients are able to select from three service modules based on their practice size. The modules range from $2,500 to $4,000. Service Modules Physician Practice Size Service Price Basic Module 1 to 2 Physicians $2,500 Intermediate Module 3 to 5 Physicians $3,000 Grand Module 5 to 7 Physicians $4,000 Page 6

7 Primary Client Profile PatientPoint Healthcare IT s primary clients are small private practice physician offices. The ideal primary client profile consists of the following: Type of Business: Size of Operation: Medical Specialty Ownership Type: Primary Physician Practice 1 5 Physician Practice Family Medicine, Internal Medicine, Pediatrics & Obstetrics Independently Owned Owner s Age Range: Years in Business: Geographical Area(s): 2-12 years From Maine to Florida Promotional Activities In order to educate, inform, and communicate with potential customers, the company plans target the memberships of state medical/societies, from Maine to Florida, and implement the following activities: Promotional Activities Direct Mail Guest Speaking Public Relations Advertisement Networking Events Conference Exhibits Approach Educating and informing physicians about the benefits of using data-mining for EHRs. Sharing knowledge and expertise the use of data-mining EHRs at state medical associations conferences. Issuing Media Releases regarding new client signings, service developments and industry awards. Placing ads in targeted physician and Healthcare Information Technology (HIT) trade publications. Attending and developing contacts at state medical association s conferences. Hosting a booth and providing information at state medical association s conferences. Page 7

8 List of Targeted State Medical Associations & Medical Societies The company expects to recruit potential clients through state medical associations/societies located from Maine to Florida. Specifically, the company will use the membership directories to develop a list of targeted clients and promote the service to the targeted clients. The state medical associations/societies include: Medical Society of the State of New York, New Hampshire Medical Society, Maine Medical Association, Maryland State Medical Society, Connecticut State Medical Society, Vermont Medical Society, Medical Society of New Jersey, Medical Society of Virginia, Pennsylvania Medical Society, Pennsylvania Medical Society, Massachusetts Medical Society, North Carolina Medical Society, Medical Society of Delaware, Florida Medical Association, Medical Association of Georgia, and South Carolina Medical Association Page 8